One-off depreciation of fixed assets

Website

One-time depreciation is a tribute to small taxpayers and entrepreneurs who are just starting their adventure with trade or services in a given tax year. In some cases, it may turn out to be a very profitable procedure. However, one-off depreciation applies to a small group of both taxpayers and assets that may be covered by it.

One-time de minimis depreciation - for whom?

Term de minimis refers to Roman law minimis non curat lex, which literally means: "the law is not concerned with the trifles." Commission Regulation (EU) No 1407/2013 of 18 December 2013, according to this law, defines small taxpayers to whom the aid will not distort competition on the market. Consequently - the support provided by the state does not have to be notified to the European Commission.

In this way, small taxpayers can benefit from one-off depreciation. A small taxpayer is an entrepreneur whose sales income in the previous tax year did not exceed the equivalent of EUR 1,200,000. In 2016, a small taxpayer will be an entrepreneur whose income did not exceed PLN 5,092,000 (conversion is made on the basis of the exchange rate announced by the National Bank of Poland on the first business day of October of the previous tax year).

One-time depreciation - what is the limit?

One-off depreciation may also be used by new taxpayers who have just started their business in a given tax year. A one-off depreciation write-off that can be made by small and new taxpayers, however, may not exceed the equivalent of PLN 50,000. euro. In this case, conversions are also calculated on the basis of the exchange rate from the first business day of October of the previous tax year.

One-off depreciation - for which fixed assets?

The Classification of Fixed Assets says that assets that can be depreciated on a one-off basis are included in groups 3 - 8, that is:

  • boilers and power machines (group 3),

  • general purpose machines, devices and apparatuses (group 4),

  • specialized machines, devices and apparatuses (group 5),

  • technical devices (group 6),

  • means of transport, except passenger cars (group 7),

  • tools, instruments, movables and equipment (group 8).

One-time depreciation - who to notify?

One-off depreciation can be reported to the tax office in order to check whether the applicable de minimis aid limit has not been exceeded. The application submitted to the office should be accompanied by:

  • a document confirming the purchase of a fixed asset,

  • proof of payment for a fixed asset,

  • fixed assets register,

  • a copy of the KPiR, which will confirm the depreciation write-off,

  • a declaration of the depreciation method that would be adopted for the fixed asset if it were not for the one-off depreciation,

  • copies of certificates of de minimis aid obtained during the current calendar year and the two preceding calendar years or a declaration on the amount of de minimis aid received in this period or, if the taxpayer has not used this form of aid before, a declaration of not receiving de minimis aid in this period,

  • information on the applicant, conducted activity and the amount of de minimis aid.

Important!

The total de minimis aid may not exceed PLN 200,000. euro in three consecutive years.